What Is Included in My Estate Plan in Connecticut? www.preserveyourestate.net 1

WHAT IS INCLUDED IN MY

ESTATE PLAN? “When people ask about the components that would comprise

an estate plan, they may not understand the fact that every case is different. There is no universal, one-size-fits-all estate

plan that would be ideal for every person.”

BARRY D.HOROWITZ Connecticut Estate Planning Attorney

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When people ask about the components that would comprise an estate

plan, they may not understand the fact that every case is different. There is

no universal, one-size-fits-all estate plan that would be ideal for every

person. At the same time, there is a certain basic structure. In this paper,

we will dissect the structure, and we will drill down a bit further along the

way to examine some of the specific circumstances that can require the

implementation of more advanced estate planning techniques.

TRANSFERRING ASSETS

Clearly, when you are planning your estate, you facilitate asset transfers

that will take place after you pass away. To many, this will equate to the

creation of a last will.

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Under very simple

circumstances, a will could

suffice, but there are some

things that you should know

about last wills. For one, you

would be leaving lump sum

inheritances to the heirs. If you

have concerns about loved ones

spending their inheritances too quickly, this may not be a very appealing

arrangement.

Plus, a will must be admitted to probate after you pass away. This is a legal

process. The executor or personal representative actually handles the

business of the estate, but the overall administration of the estate is

supervised by the probate court.

Probate is not inherently negative, and it is in place to provide oversight

and protections. However, it is not always completely positive for the

rightful heirs to the estate. They cannot receive their inheritances while the

process is underway, and it is time-consuming. The best case scenario

would be around nine months to a year, and complex cases can take longer.

There are also expenses that accumulate during probate, and these costs

reduce the amount of the inheritances that will be going to the heirs to the

estate.

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People who want to avoid probate and/or include spendthrift provisions

often use revocable living trusts. When you convey assets into a revocable

living trust, you can include spendthrift provisions. The trustee would

follow these instructions after you pass away.

Distributions to the beneficiaries would not be subject to the probate

process, so the distributions to the beneficiaries could typically take place in

a more timely manner.

A will or a revocable living trust would be suitable for many, but in some

instances, there are better options. For example, high net worth individuals

can be exposed to estate taxes. There is a federal estate tax, and here in

Connecticut where we practice law, there is a state-level estate tax.

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People who are faced with estate tax exposure can implement estate tax

efficiency strategies. Irrevocable trusts of various kinds are often used for

estate tax efficiency purposes.

There are also trusts that can be used to support people with special needs

without impacting need-based

government benefits like

Medicaid and Supplemental

Security Income.

Asset protection trusts are

available to people who are

concerned about lawsuits, and

there are charitable trusts that

can provide benefits under

certain circumstances as well.

The point is, you have options when it comes to asset transfers. You should

certainly discuss them with a licensed estate planning attorney before you

make any decisions.

END OF LIFE PLANNING

Taking care of the things that will happen after you pass away is a big part

of the equation, but you should also plan for the latter stages of your life.

Your estate plan should include a living will. With this type of will, you state

your wishes regarding the implementation of life-sustaining measures.

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The plan can also include durable powers of attorney. With these

documents, you name agents to make decisions on your behalf in the event

of your incapacitation.

SUMMARY

The probate court handles estate matters. Under many circumstances, the

court will supervise when an estate is being administered.

However, there are some circumstances that would allow for asset

distributions outside of probate. Property held in joint tenancy would not

be subject to the process, and assets in a payable on death account would be

transferred outside of probate.

Life insurance proceeds can be distributed without probate court

involvement, and assets in a living trust could also be transferred free of

probate.

To learn more about probate and how you may be able to avoid it, schedule

a consultation with a licensed estate planning attorney.

REFERENCES

American Bar Association http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/estate_planning_faq.html Mayo Clinic http://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/art-20046303

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About the Author

Barry D. Horowitz

Barry D. Horowitz is a founding partner in the law firm of

Nirenstein, Horowitz & Associates, P.C. He received his

diploma from the Loomis Chaffee School and his Bachelor

of Arts from Bennington College, where he dual majored

in philosophy and music.

Mr. Horowitz was awarded his Juris Doctor degree with

honors from the University of Connecticut School of Law.

While attending law school, Mr. Horowitz received the

American Jurisprudence Award in Legal Ethics and the

Nathan Burkan Award.

After graduation from law school, Mr. Horowitz continued his legal education at New

York University School of Law where he received a Post Doctorate Law Degree in

Taxation. He has also recently received a national achievement award.

Mr. Horowitz is admitted to practice before all the state courts in the State of

Connecticut and the United States District Court. He is a member of the Hartford

County Bar Association, a charter member of the American Academy of Estate Planning

Attorneys, and has recently received the American Academy Award. Mr. Horowitz is

also an active member of the Connecticut Bar Association where he is a member of the

Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics

Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he

has earned a reputation as a dynamic and entertaining speaker. He also has recently

published a book entitled “Guiding Those Left Behind in Connecticut.”

Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD WESTPORT Gothic Park 191 Post Road West 43 Woodland St., Suite 520 Westport, CT 06880 Hartford, CT 06105 Phone: 203-221-2617 Phone: (860) 548-1000